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Federal Perkins Loans do not accumulate interest while a student is in school and do not have a loan origination fee. Repayment begins nine months after a student leaves school or is enrolled less than half-time. The interest rate is fixed at five percent, and the loan has a ten-year repayment period. In some years, there may be a limited amount of Perkins loan funds to award to students.

Federal Direct Subsidized Stafford Loans allow students to borrow as much as $3,500 a year for first-year students, $4,500 for second-year students, and $5,500 a year thereafter. The amount an applicant may borrow depends on the financial aid eligibility of the family as determined by the FAFSA. Based on current federal regulations as of 7/1/2014, the interest for a Subsidized Stafford Loan is fixed at 4.66%. The principal amount of the loan is deferred, and the government pays the interest while the student is enrolled at least half time. If the student drops below half time, takes a leave of absence, or withdraws from the college, the student will have six months before starting to repay the loan. An origination fee of 1.073 percent of the total amount is deducted from the total amount borrowed before the loan is disbursed.

Federal Direct Unsubsidized Stafford Loans begin accumulating interest immediately and are available to any student who does not qualify for the federal subsidized Stafford loan. As of July 1, 2008, students who do qualify for federal subsidized Stafford loans may borrow an additional $2,000 per year in federal unsubsidized Stafford loans. The interest rate is fixed at 4.66 percent. If the student drops below half time, takes a leave of absence, or withdraws from the college, the student will have six months before starting to repay the loan. An origination fee of 1.073 percent of the total amount is deducted from the total amount borrowed before the loan is disbursed.

Federal Direct PLUS Loans give parents the chance to borrow an amount up to the cost of attendance, minus all financial aid and scholarships received. The interest rate is fixed at 7.21 percent with a 4.292 percent origination fee. Repayment begins 60 days after disbursement of the loan. However, the principal amount of the loan may be deferred while the student is in school and up to six months after the student leaves school or is enrolled less than half-time. Parents can contact the federal government at 1-800-848-0979 for information about this deferred repayment option.